Europe's premium automakers are investing heavily to match Tesla. The Silicon Valley-based upstart has made BMW, Mercedes, Audi and Porsche look woefully behind the times in an area they typically dominate: technology.

The European Commission has found that VW Group broke consumer laws that ban exaggerated environmental claims in 20 EU countries. The findings will add to pressure on VW to compensate 8.5 million European customers hit by the automaker's emissions cheating.